COVINGTON, Ky. - City administrators are proposing that Covington’s property tax rates remain unchanged in 2018.

 

The Covington City Commission gave first reading to rates of 0.327 for real estate and 0.349 for personal property - the same as the rates for calendar year 2017.

 

That translates to $3.27 per each $1,000 in assessed value of real estate. For example, the owner of a $100,000 home would pay $327, and the owner of a $70,000 home would pay $228.90.

 

The rates were the recommendation of City Manager David Johnston after months of discussion with Finance Director Muhammed Owusu.

 

“There is no reason to ask for an increase from our citizens. We can make our budget work with these rates,” Johnston said.

 

The real estate and personal property taxes are projected to bring in $7,613,576 in the 2019 Fiscal Year, which began July 1.

 

Historically, the rates are slightly higher than they were 10 years ago but less than half as high as they were in the 1970s.

 

The property assessment places Covington in the middle of the pack among Kenton County cities, given that half of those cities also have separate ad valorem assessments for street repairs, recreation, and fire/EMS. Covington has none of those separate assessments.

 

For comparison, Owusu presented the Mayor and Commissioners at their request with rates that would bring in 1 percent, 2 percent, 3 percent, and 4 percent more revenue than last year.

 

In his PowerPoint, he also pointed out that of the real estate taxes paid by a Covington resident, only 17 percent goes to City government, with the majority going to the Commonwealth, the school system, the county, the library, and other agencies.

 

First readings in Covington do not require a voice vote. A required second reading - which will include a vote by the five-member Commission - will occur Aug. 28.

 

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